The red color in your chips got a new import duty: paprika extract from India faces 18.67% to 25.42% from October 8
- On October 8, 2026 the Commerce Department issued antidumping and countervailing duty orders on oleoresin paprika from India (91 FR 64344).
- Importers now post cash deposits of 18.67 percent to 25.42 percent depending on the exporter, and 21.90 percent for every company not named.
- Commerce also found dumping margins of 4.24 to 5.78 percent, but set that deposit at 0.00 percent after offsetting export subsidies.
- The new deposits come on top of an ordinary duty of 3.1 or 3.8 percent, depending on the tariff line (USITC tariff schedule, read October 9, 2026).
Key facts
- The US Commerce Department issued antidumping and countervailing duty orders on oleoresin paprika from India on October 8, 2026 (Federal Register, 91 FR 64344).
- Countervailing duty deposit rates on Indian oleoresin paprika are 18.67 percent for Mane Kancor Ingredients, 25.42 percent for Synthite Industries and 21.90 percent for all other exporters, as of October 8, 2026 (Commerce Department, 91 FR 64344).
- Commerce calculated dumping margins of 5.78 percent for Synthite Industries, 4.24 percent for Mane Kancor and 5.08 percent for all others, with an antidumping cash deposit of 0.00 percent after subsidy offsets (Commerce Department, October 8, 2026).
- The US International Trade Commission determined that a US industry is materially injured by imports of oleoresin paprika from India, in a case opened on June 25, 2025 on a petition from Rezolex of Las Cruces, New Mexico (USITC notice, Federal Register, October 8, 2026).
- The ordinary US duty on the two main tariff lines for oleoresin paprika is 3.1 percent (HTS 3203.00.80) and 3.8 percent (HTS 3301.90.10) (USITC Harmonized Tariff Schedule, read October 9, 2026).
This is a fast-moving story. Prices, tariffs and policy in this brief were correct as of October 9, 2026 and can change from one day to the next; we update when the primary sources do.
What happened
Oleoresin paprika is the red-orange oil extracted from dried peppers. Commerce's notice calls it a "coloring additive" and lists its other names, including "paprika extract" and the European code E160c. FDA rules allow it for "the coloring of foods generally" (21 CFR 73.345).
The case started with one New Mexico producer, Rezolex, which filed petitions that the trade commission took up on June 25, 2025. Commerce ruled in August 2026 that Indian exporters were subsidized and were selling below fair value. The commission then found injury and notified Commerce on October 5. Both notices ran in the Federal Register on Thursday, October 8.
The duty is collected as a cash deposit when the goods clear customs. For most exporters that is 21.90 percent of the declared value. Commerce reviews the rates later and can raise or lower the final bill.
One wrinkle helps explain the timing. Provisional deposits had lapsed, so Indian paprika extract entered without the subsidy deposit from June 6, 2026 until this week. That window is now closed.
What has not happened
No food company has announced a price change because of this order. We found none in the sources we read.
The order covers India only. Paprika extract from other countries, and from US processors, is untouched. Ground paprika in a spice jar is a different product and is outside the scope.
No source we read puts a number on how much Indian paprika extract the US imports. The trade commission's staff report has that figure and we could not open it.
On fuel, the picture is the same as yesterday. AAA had diesel at $6.2847 on October 8, 24.3 cents under the September 22 record. The October 5 dyed-diesel order was printed in the Federal Register on October 9 (91 FR 64747), and Treasury's five-day answer is due Saturday. Nothing from Treasury or the IRS was in the Register this morning.
The trade commission also scheduled a full review of the existing duties on phosphate fertilizer from Morocco and Russia (91 FR 64676, October 9). That is a review. No rate changed.
Which foods are exposed
| Food | Why it is exposed | Domestic fallback |
|---|---|---|
| Seasoned chips and snack mixes | Labels often list "paprika extract" or "oleoresin paprika" for color | Plain salted versions; store brands that color with annatto |
| Pepperoni, chorizo, seasoned sausage | Same coloring, used for the red tint | Fresh sausage from the meat counter, uncolored |
| Orange cheese sauces, boxed macaroni | Paprika extract and annatto share this job | Block cheddar, colored with annatto or not at all |
| Bottled dressings and seasoning blends | Small amounts for color | Oil, vinegar and ground paprika from the spice aisle |
What to do this month
Nothing urgent. This is a coloring used in small amounts, and the duty lands on the manufacturer's color supplier long before it lands on you.
Read one label for curiosity. If the ingredient list on a bag of barbecue chips ends with "paprika extract (color)", that is the product in this order. The label will not tell you which country it came from.
Keep the bigger lines in view. Beef, produce freight and diesel move a grocery bill by dollars. I would put this one on the watch list and leave the shopping list alone.
The monthly numbers behind this brief, USDA forecast, BLS shelf prices and diesel, are on the food prices 2026 tracker.
Editorial note: this brief was drafted with AI assistance from the sources below and checked by our editor before publication. Read How we work.
Sources
- Commerce Department, Oct 8, 2026 — Oleoresin Paprika From India: Antidumping Duty Order and Countervailing Duty Order, 91 FR 64344
- USITC, Oct 8, 2026 — Oleoresin Paprika From India; Determinations, Federal Register
- USITC, Oct 9, 2026 — Harmonized Tariff Schedule, headings 3203.00.80 and 3301.90.10
- FDA (eCFR) — 21 CFR 73.345, Paprika oleoresin
- AAA, Oct 8, 2026 — AAA Gas Prices, national averages
- Federal Register, Oct 9, 2026 — Executive Order "Emergency Tax Relief on Diesel Fuel", 91 FR 64747
- USITC, Oct 9, 2026 — Phosphate Fertilizers From Morocco and Russia; Scheduling of Full Five-Year Reviews, 91 FR 64676
Frequently Asked Questions
It is a red-orange oil extracted from dried Capsicum peppers and used mainly to color food. On US labels it usually appears as "paprika extract" or "oleoresin paprika". FDA rules permit it for coloring foods generally (21 CFR 73.345).
As of October 8, 2026, importers post a countervailing duty deposit of 18.67 percent for Mane Kancor Ingredients, 25.42 percent for Synthite Industries and 21.90 percent for all other Indian exporters. The antidumping deposit is 0.00 percent after subsidy offsets. Both come on top of the ordinary duty of 3.1 or 3.8 percent.
No source we found says so, and no company has announced a change tied to the order. The ingredient is used in small amounts, so we would not expect a visible move at the register from this order alone.
No. The scope is the liquid coloring extract with a color strength of at least 500 ASTA units. Ground paprika sold as a spice is a different product.
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